Want to trade in global stock markets? Read this

Want to trade in global stock markets? Read this

Hurrah! Indians can invest in global derivatives markets now. Let's try to figure out how exactly this arrangement works and how an individual investor can gain from this opportunity.

Advancement in technology has erased international boundaries. Now the whole world behaves like a single market. Distance has lost its meaning due to globalisation. This year SEBI's (Indian stock market regulator the Securities and Exchange Board of India) move to allow the Indian investors to trade in almost 24 major global indices including that of US, Europe and Asia, sitting in their comfortable homes, strengthens the proposition that everything is local now.

As SEBI has opened the gates partially (you can only trade in derivatives of global indices for the time being not directly in equity markets) here's how Indian investors can now participate in global markets.

Want to trade in global stock markets? Read this

If you are a new investor and do not have an overseas trading account you will have to open an overseas trading account first. For this you need to fill up a new account opening form. You will also have to furnish copies of the identity and residence proofs as mentioned below:

Proof of identity / residence:

1. Copy of valid passport (as a proof of identity and residence), or

2. Copy of valid driving license (as a proof of identity and residence), or

3. Copy of PAN card (as a proof of your identity) and banker's letter (as a proof of your residence)

Conclusion

If you possess good knowledge of foreign market, SEBI's step provides you with nice opportunity to extract benefit by going global. It's high time you match your wits with global investors.

Image: A woman drinks coffee in front of the stock exchange in Sao Paulo.Photographs: Nacho Doce/Reuters

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